Intuit is set to terminate job of about 1,800 employees, or 10 percent of its workforce, as it looks to focus on its AI-powered tax preparation software and other financial products.
The company, which has invested in providing generative AI powered accounting and tax preparation tools for small and medium businesses, expects to close two of its sites in Edmonton, Canada and Boise, Idaho.
Intuit will rehire 1,800 new people primarily in engineering, product and customer-facing roles, CEO Sasan Goodarzi said in a note to employees. The accounting software company did not provide a timeline for the fresh hiring.
“AI is igniting global innovation at an incredible pace, transforming every industry and company in ways that were unimaginable just a few years ago. Companies that aren’t prepared to take advantage of this AI revolution will fall behind and, over time, will no longer exist,” Intuit CEO said in his note to employees.
INVESTMENT AREAS
Intuit has unveiled plans to accelerate investments in several key areas as part of its strategic growth initiatives, branded as Big Bets.
Revolutionizing Speed to Benefit (Big Bet 1): Intuit is set to enhance its GenAI-powered financial assistant, Intuit Assist. This tool, supported by a network of experts, aims to provide seamless “done-for-you” experiences combined with human expertise. Intuit will significantly boost investments in data and AI through GenOS, transforming traditional workflows into AI-native experiences that enhance efficiency and profitability for customers. The company is also ramping up its recruitment of top-tier engineering talent across the tech sector to support these advancements.
Connecting People to Experts (Big Bet 2): Intuit’s AI-driven expert platform is positioned as a market differentiator, integrating AI-powered human expertise at scale to meet the financial needs of consumers, small and mid-market businesses, and partners. The company plans to increase its investments in data and AI to better utilize comprehensive data, facilitating real-time connections between customers and the most suitable experts. This initiative includes bolstering teams with additional AI-augmented expert network personnel and hiring marketing professionals with specialized digital services expertise.
Accelerating Money Solutions: Intuit’s fintech platform, designed to manage end-to-end financial activities and improve cash flow for small and mid-market customers, will receive heightened investment. The focus is on delivering superior, seamless solutions for payments, capital, banking, bill payments, and invoicing across multiple regions. This effort will be supported by hiring experienced fintech professionals in engineering, design, risk management, and customer success.
Disrupting the Mid-Market (Big Bet 5): Intuit aims to empower mid-market customers by providing an AI-driven expert platform tailored to their needs as their business complexities grow. This includes enhanced accounting and reporting capabilities, money solutions, human capital management, and customer acquisition solutions powered by AI experts. The company will accelerate investments in these areas, supported by recruiting professionals with extensive mid-market experience in product development, account management, marketing, sales, and customer success.
Accelerating International Growth: Intuit plans to unify QuickBooks and Mailchimp into a global growth platform, particularly targeting markets in Canada, the UK, and Australia. Investments will focus on expanding the AI-driven expert platform and leveraging Mailchimp’s international presence to spearhead growth in Europe and other regions. Intuit remains committed to its international hubs in London, Toronto, and Sydney, and will hire talent with international expertise in product development, engineering, and market strategy to drive this initiative forward.
Intuit, which also makes online accounting software QuickBooks, said it will increase investments in generative AI and plans to expand into new markets including Canada, United Kingdom and Australia.
The note added that 300 roles were being eliminated to streamline work, while consolidating 80 technology roles to sites such as Atlanta, Bengaluru, Tel Aviv and others as part of the layoff plan.
The layoffs will cost Intuit between $250 million and $260 million, with substantial amounts of the charge expected to be incurred in the fourth quarter, the company said in a regulatory filing, Reuters news report said.
Intuit expects to grow headcount in fiscal 2025 and beyond, Goodarzi said.
In May, Intuit reported a rise in third-quarter revenue and increased it annual forecasts expecting a boost in demand for its AI-integrated products.
